Melior Resources Inc.

Melior Resources Inc.

November 07, 2017 08:52 ET

Melior Signs 10-Year Fertilizer Off-Take Agreement With Soft Agriculture

TORONTO, ONTARIO--(Marketwired - Nov. 7, 2017) - Melior Resources Inc. (TSX VENTURE:MLR) ("Melior" or the "Company") today announced that its wholly-owned subsidiary, Goondicum Resources Pty Limited, has signed an off-take agreement (the "Agreement") to supply apatite fertilizer to SOFT Agriculture Pty Limited ("SOFT"), an organic agri-products manufacturer based in Australia.

"We are extremely pleased to have entered into a long-term off-take agreement with SOFT given its commitment to organic farming," said Mark McCauley, President and CEO of Melior Resources. "The agreement is a testament to the quality of our apatite product and our ability to penetrate the fast-growing organic farming market."

Under the terms of the agreement SOFT will purchase 100% of Melior's production volume at a price which is 50% higher than the price Goondicum previously received for this product reflecting the increasing demand for Goondicum apatite's unique attributes. The Agreement will continue for the earlier of the life of the Goondicum ilmenite mine or 10 years.

SOFT is a rapidly growing organic fertilizer manufacturer based in northern New South Wales and supplies a range of organic fertilizer and stock feed products to the Australian agricultural industry. SOFT has been the primary customer for Melior in previous operational periods and possesses proprietary technology which processes the raw apatite from the Goondicum mine into a high value organic fertilizer.

Apatite from the Goondicum ilmenite mine is a high P2O5, refractory phosphate rock which is unique in its mineralogical and physical characteristics. Goondicum apatite has no cadmium or lead content and is chemically very clean, making it ideal for organic fertilizer and stock feed manufacture. Being a refractory rock means Goondicum apatite is a slow release phosphate source and, as a result, its use is not detrimental to waterways and adjacent areas to where it is applied.

About Melior

Melior is the owner and operator of the Goondicum ilmenite mine, a past-producing ilmenite and apatite mine strategically located in Queensland Australia. Further details on Melior and the Goondicum ilmenite mine can be found at and regulatory filings are available on SEDAR.

Melior is incorporated under the provisions of the Business Corporations Act (British Columbia) and has a registered office in Toronto, Ontario. Melior is classified as a Tier 1 Mining Issuer under the policies of the TSX Venture Exchange.

Forward Looking Statements Disclaimer

Statements made in this news release may be forward-looking and therefore subject to various risks and uncertainties. Such statements can typically be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "possible", "continue", "objective" or other similar expressions concerning matters that are not historical facts. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Melior does not undertake to update any forward-looking statements; such statements speak only as at the date made.

Going Concern Risk

As described in Melior's most recent MD&A, the continuing operations of the Company are dependent upon its ability to continue to raise adequate financing, to commence profitable operations in the future, and repay its liabilities arising from normal business operations as they become due. There remains a significant risk that the Company is unable to find alternative sources of financing for on-going working capital requirements. These material uncertainties cast significant doubt upon the Company's ability to continue as a going concern.

Failure to obtain sufficient financing could result in a delay or abandonment of the Goondicum ilmenite mine and could force the Company into reorganization, bankruptcy or insolvency proceedings. Additional financing may not be available when needed or, if available, the terms of such financing might not be favourable to the Company and might involve substantial dilution to existing shareholders. Failure to raise capital when needed would have a material adverse effect on the Company's ability to pursue its business strategy, and accordingly could negatively impact the Company's business, financial condition and results of operations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information